SENSATIONAL RISES IN METAL MARKET.

Auckland Star, Volume LXVIII, Issue 44, 22 February 1937, Page 7

SENSATIONAL RISES IN METAL MARKET.

ARMAMENTS ECHO.

Repercussions to Britain's

New Programme.

UNPRECEDENTED ACTIVITY

Unitet. Press Association. —Copyright. (Received 2 p.m.) LON DON", February 21. Sensational rises in metals, accompanied by almost unprecedented activity, have been among the most important repercussions of the Government's rearmament programme. Simultaneously gilt-edged securities have continued their downward course, passing the worst week since 1931.

Nearly 25,000 tons of metal, valued well over £1,000,000, changed hands. A flood of speculative buying carried copper, lead, and spelter to the highest level for years. Tin, neglected early in the week, jumped 170/ a ton.

Some tjuai ters are concerned about the rapid rise in prices, but the market as a whole considers that the peak is not yet reached. The United States export price for copper is fixed at 117 points higher than the recently established domestic price. It is believed that America will require to import spelter in the near future.

The buying of tin appears to have been purely professional, based on the belief that it is undervalued in relation to other metals. The price and higher demand for metals evoked interest in the shares of leading producers, most of which showed substantial rises during the week. Oil shares are also in the limelight with an enormous turnover In shares at higher prices.

Falls Considered Overdue. Xot only gilt-edged stock but many leading industrials were neglected during the week on the London Stock Exchange. Many City authorities consider the falls overdone in view of the continuance of expanding trade profits. They point out that the extent to which rising costs and the j>ossible increase in taxation may affect industry varies, with individual concerns. The market is, at the moment, all one way. The public sold gilt-«ed<;ed and industrials for taxvulnerable securities like breweries and bought arms and metal shares.

The "Yorkshire Observer," after a survey of the world wool situation, considers the position sound, but Hradford is at present passing through a phase of irregular prices. Business remains {rood, many firms buying normal <juantities. They are confident wool will be wanted long before next selling season at higher levels, and believe that the rearmament programme will increase demand inasmuch as the expansion of the Serviced necessitates more uniforms.

The prosperity of the iron, coal, steel, and other industries will increase the workers' purchasing power.

NEW ZEALAND BLAMED

Weakness of London Butter

Market.

REMOVAL OF CONTROL UROED.

(Received 1.30 p.m.) LONDON, February 21. The butter market continues to show lack of flexibility, many traders ascribing the dullness to New Zealand control, and opining that removal would mean a sharp recovery in values. Continental types still command a premium, but a break in these is ex|>ected shortly. Wren, Sutherland, Limited, attack the New Zealand policy, declaring that control and description are a bugbear. Buyers object to dictatorship in any shape or form and while it continues- there is little possibility of any reasonable improvement.